LNG Terminal – A milestone project for the energy role of Cyprus

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Vasilikos, July 10th 2020

“We establish the next day of energy”. This is the slogan of the new era, which is signaled in Cyprus, as the country is ready to welcome natural gas, the fuel of the 21st century. A special ceremony was held yesterday in Vassilikos, within which the activities for the construction of the largest energy project were launched. Nicos Anastasiades, President of the Republic of Cyprus, attended the ceremony and placed the cornerstone along with Symeon Kassianides, Chairman of the Natural Gas Public Company (ETYFA LTD), Georgios Lakkotrypis, Minister of Energy, Commerce and Industry and Michalis Komodromos, Chairman of the Electricity Authority of Cyprus (EAC).

Hundreds of guests attended the ceremony. Among them members of the Cabinet and the Parliament, ambassadors from many countries where Cyprus is developing activities, as well as Greek and international entrepreneurs, local and international media.

Mr. Anastasiades marked this day as a historic landmark. As he pointed out “this officially signals the materialization of a grandiose project, of strategic importance and high national significance. This project places Cyprus into an orbit of a new energy era, opening solid perspective both in terms of economic development and the wider progress of citizens and the country”.

The President of the Republic of Cyprus pointed out the international significance and value of the project, stressing that it has been acknowledged by the international community as a European project of common interest. Mr Anastasiades referred to the multiannual persistent efforts for the materialization of the project. “This is the day when we leave the past behind. After almost two decades, we manage today to make it possible and implement a decision made in January 2003, thanks to the determination of the state to support the Natural Gas Public Company, as well as the significant contribution of the Cyprus Energy Regulatory Authority.

“This is a symbolic day, as it reflects the determination, the hard work and the teamwork oriented towards a common vision. Today, we do not only establish the launch of activities for the materialization of a major project. We establish a new era for Cyprus. We establish the next day of the energy in our country,” stated Mr Kassianides, while opening the event.  

Referring to its valuable allies, standing by the side of ETYFA, Mr Kassianides pointed out the successful and fruitful partnership with EAC and, more specifically, with its Chairman Michalis Komodromos, the Board of Directors and the human resources, as they collectively contributed to the accomplishment of a common national goal. It is stressed that EAC acquired a 30% stake in ETYFA.

This is the largest energy investment that has taken place over the last years in the country, since the estimated cost rises to 289 million euros, with ETYFA having secured a 101 million euro subsidy by the European Commission, through “Connecting Europe Facility” and 43 million from the participation of EAC in the shareholding structure of ETYFA and 150 million euros from the European Investment Bank (EIB). The 80-million-euro financing by the European Bank for Reconstruction and Development reinforces and complements the financing puzzle for the project of importing liquified natural gas to Cyprus.

During the event, Mr. Andreas Pentaliotis, DEFA’s Head of Operations and Projects Management, presented a project simulation video, showcasing the technical requirements on the construction of the Liquefied Natural Gas Terminal (LNG Terminal).

More specifically, the infrastructure project in Vasilikos, undertaken by the international consortium China Petroleum Pipeline Engineering CO LTD, Metron SA, Hudong-Zhonghua Shipbuilding and Wilhelmsen Ship Management, following a tender, will include a Floating Storage Regasification Unit (FSRU), a jetty for the mooring of the FSRU, a jetty-borne gas pipeline and related infrastructure.

“Today we celebrate the springboard of the construction of one of the most modern energy projects in Eastern Mediterranean,” stated Nikos Papoutsis, CEO and Managing Director of Metron SA, praising the strategic importance of this project for Cyprus and the international market.

Sun Quanjun, President of China Petroleum Pipeline Engineering CO LTD., expressed his contentment and gratification on the participation of the company he represents in the project. “We are confident that this project will become a bridge of friendship between the two countries and it will contribute in the economic and social development in Cyprus,” he added.

It is anticipated that the construction project of importing LNG will be completed within less than 24 months. The goal is to harness natural gas for power generation in summer 2022.

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